Trust

Illustration 1) shows a basic trust where the Grantor

(Settler) places the corpus in the trust for the beneficiary.
1) The trustee is the party that was contractually charged by the
grantor to administer the trust onto the beneficiary.
Trustee My understanding says the Entitlement (collateral) is placed
Tr into Trust as the surety to satisfy MY contractual
agreements. If I default on any of my contracts, the
Entitlement becomes subject to levy to satisfy the obligations
owed to the Secured Party of whatever contract I entered
into on behalf of ME, thus granting pre-approved permission
G B to the Secured Party to issue the Entitlement Order to the 3rd
party to release its hold on the Entitlement. When I AFV,
and return the instrument, I become SPC to the contract and
Grantor Beneficiary the tables are reversed. There is a constant shift in which
party possesses which title and right of claim thereto, and
that is dictated by the ACTIONS that the record last reflects
QIB that the parties have made.

For the sake of understanding the relations of the various

2) roles, I will color coordinate the entites.

Illustration 2) [The DTC Process] shows that pursuant to

3 3rd Party Rule 144A For purposes of this section, qualified institutional
buyer shall mean….
(7)(F) Any trust fund whose trustee is a bank or trust
company….

S P The “Cestui Que Trust” (CQT) was created when the

grantor’s informant pledged, and then later was re-pledged
by the grantor itself when it turned 18 years old. The CQT is
Sellor Participant also the QIB. The Seller/Issuer (S) of the Security causes
the Security to be delivered to the QIB via the 3rd party
Intermediary (Clearing Corporation) (3), and once all of the
underlying contracts are in place to grant the applicant to
become a Participant (P), then the transaction can be
fulfilled.